Know someone who would like this newsletter? Forward it to them.
The World
New York City’s Empty Offices Reveal a Global Property Dilemma: The rise of remote work will hurt older buildings, leaving landlords in the lurch. In the heart of midtown Manhattan lies a multibillion-dollar problem for building owners, the city and thousands of workers. Blocks of decades-old office towers sit partially empty, in an awkward position: too outdated to attract tenants seeking the latest amenities, too new to be demolished or converted for another purpose. It’s a situation playing out around the globe as employers adapt to flexible work after the Covid-19 pandemic and rethink how much space they need. Even as people are increasingly called back to offices for at least some of the week, vacancy rates have soared in cities from Hong Kong to London and Toronto. (Bloomberg)
The IMF’s lending to economically troubled countries has hit a record high as the world’s lender of last resort battles simultaneous crises that have pushed at least five countries into default, with more expected to follow. The pandemic, Russia’s attack on Ukraine and a sharp rise in global interest rates have forced dozens of countries to seek IMF assistance. A Financial Times analysis of IMF data shows that at the end of August the volume of loans disbursed by the fund amounted to $140bn in 44 separate programs. (Financial Times)
Zelenskyy on Putin’s threat of nuclear weapons: ‘I don’t think he’s bluffing’. Ukrainian President Volodymyr Zelenskyy said Russia’s threat of nuclear weapons use “could be a reality,” in an interview with CBS’ “Face the Nation” on Sunday. “He wants to scare the whole world. These are the first steps of his nuclear blackmail. I don’t think he’s bluffing,” Zelenskyy said. (CNBC)
Giorgia Meloni is poised to become Italy's first female prime minister. Provisional results from Sunday's general election showed Meloni's Brothers of Italy (FdI) group topping the polls with almost 26% of the vote, propelling an alliance of right-wing parties to clear majorities in both houses of parliament. (Reuters)
America and its allies will act “decisively” if Russia uses a tactical nuclear weapon in Ukraine, US national security adviser Jake Sullivan said on Sunday, reaffirming the Joe Biden White House’s previous response to mounting concerns that Vladimir Putin’s threats are in increased danger of being realized. (The Guardian)
Sterling falls to record low of $1.035 against the dollar: Sterling slid as much as 4.7 per cent against the dollar to $1.035, hitting a record low in Asian trading after UK chancellor Kwasi Kwarteng vowed to pursue more tax cuts. (Financial Times)
How long can the super-prime property boom continue? The super-rich seem to have been largely unaffected by rising mortgage rates, spiralling inflation and the threat of recession — so far. (Financial Times)
Economy
Investors are buying record amounts of insurance contracts to protect themselves from a sell-off that has already wiped trillions of dollars off the value of US stocks. Purchases of put option contracts on stocks and exchange traded funds have surged, with big money managers spending $34.3bn on the options in the four weeks to September 23, according to Options Clearing Corp data analysed by Sundial Capital Research. The total was the largest on record in data going back to 2009, and four times the average since the start of 2020. Institutional investors have spent $9.6bn in the past week alone. The splurge underscores the extent to which big funds want to insulate themselves from a sell-off that has dragged on for nine months, and has been supercharged by central bankers across the globe aggressively raising interest rates to tame high inflation. (Financial Times)
Japan's factory activity growth hit a 20-month low in September, as firms struggled with a global slowdown and pressure from high energy and raw material prices that was exacerbated by a weak yen. The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) slipped to a seasonally adjusted 51.0 in September from the prior month's final of 51.5. (Reuters)
Gucci, Burberry Join Booming Secondhand Luxury Trade: The booming market for secondhand luxury goods is creating a dilemma for makers of high-end handbags, fashion and jewelry: Join the trend, or ignore it. Secondhand luxury isn’t new, but its popularity is surging. Steep price hikes by prestigious brands like Chanel SA are driving some luxury buyers to look for less expensive used items. Others are seizing on secondhand goods’ sustainability bona fides: A used pair of designer jeans doesn’t cost any more of the planet’s resources to make. Used luxury sales were up 65% last year relative to 2017, compared with a 12% rise in new luxury sales, according to Bain & Co. It forecasts that over the next five years, secondhand luxury sales will increase annually at around 15%, double the expected rate of new sales. (Wall Street Journal)
Technology
India is trying to turn itself into a chip powerhouse: India could have a large role to play in the semiconductor industry, analysts say. India has been making moves to bring the manufacturing of chips to the country. New Delhi’s strategy is twofold — lure in foreign companies and build on areas where India has an advantage, such as chip design. (CNBC)
Venture Firms’ $290 Billion ‘Dry Powder’ is About to Revive Startup Funding: Startup founders should expect a tidal wave of venture capital interest next year as a record level of dry powder pressures VC funds to step up their investment pace, according to a new analysis of these cash reserves. U.S. VC investors are sitting on $290 billion, including $162 billion reserved specifically for new investments, according to Jon Sakoda, founder of early-stage venture firm Decibel Partners, who analyzed nearly a decade of venture fundraising and investment activity. That means VC firms should return to or even surpass last year’s blockbuster investing activity next year. (The Information)
Big Tech’s New Anti-Hacking Strategy: Trust No One. Hackers keep tricking employees to gain access to corporate networks, so companies are changing their approach to make it harder to wreak havoc once they’re in. (Wall Street Journal)
Silicon Valley Slides Back Into ‘Bro’ Culture: Elon Musk, Mark Zuckerberg and Marc Andreessen show how the tech industry’s insular culture remains largely unchanged. (New York Times)
The iPhone, in its third year of a three-year design cycle, may be overhauled in 2023; Apple may delay Pay Later to 2023 and may not host an October 2022 event. (Bloomberg)
Smart Links
Atlanta Fed President Bostic expects job losses but says there’s a really good chance to get to 2% inflation without killing the economy. (CNBC)
Millions Left Without Power in Philippines After Typhoon. (Bloomberg)
SiriusXM reportedly places former quarterback Brett Favre’s NFL show on hold. (CNBC)
Hong Kong IPOs suffer from business downturn and China tension. (Nikkei Asia Review)
Governor Newsom vetoes a crypto regulation bill that required licenses to facilitate transactions. (CoinDesk)
Study: LinkedIn's A/B testing of its People You May Know algorithm, involving 4M+ users in 2015 and 16M+ in 2019, could have affected some users' livelihoods. (New York Times)